What does it mean to be an attorney for property?

Acting as an attorney* (under a Power of Attorney) is a tremendous responsibility and one that should not be given — or taken on — without careful consideration.  An attorney’s overall responsibility is to act honestly, in good faith and exclusively for the benefit of the individual appointing the attorney (known as the donor*).  Attorneys can face responsibilities that demand a great deal of time, energy and attention to detail.  In addition, the government’s increased interest in regulating an attorney’s activities has resulted in more complex tasks for attorneys. We understand that these necessary administrative tasks are probably not where you want to spend your time, especially if you are also caring for a loved one.

Typical duties of an attorney

Depending on your province or territory of residence, the responsibilities of an attorney may include:

- Consulting and communicating with the donor as well as the donor’s family

- Managing and safeguarding the assets

- Keeping detailed records of all transactions involving the donor’s property, and ensuring tax returns are filed

- Working with the attorney for personal/health care to ensure the donor has the necessary financial resources

- Making expenditures on the donor’s behalf for their support and care, and for the support and care of any of their dependents

When a Power of Attorney takes effect?

A Power of Attorney of Property can take effect immediately, meaning having legal effect.  Certain events may be required to take place before the Power of Attorney can be valid.  Here are some examples:

- A Power of Attorney may become valid when the individual loses capacity.  This type of continuing Power of Attorney is common.

- A business owner may grant someone a Power or Attorney which starts as of a certain date and ceases when he/she loses capacity.

- An individual may invoke a Power of Attorney when he/she has capacity to allow other trusted individual(s) to act on his/her behalf.

When a Power of Attorney ends?

- Most individual Power of Attorney for Property continues when the individual loses capacity (known as “Continuing”) and ends when the individual is deceased.

- Some Power of Attorneys end when the individual loses his/her capacity (common in a business arrangement).

Considerations when choosing an Attorney for Property?

Many people feel overwhelmed by the thought of being responsible for managing the financial affairs of a loved one. This is one of many circumstances where the services of a professional, such as a trust company, can provide valuable support, including for the following issues.

Complex family dynamics – Acting as an attorney can often create family conflict or renew existing family discord. An attorney may feel pressure from other family members or friends to act in a way that may not be consistent with what the donor would have wanted.

If you are considering naming someone as your power of attorney – we can help.  Our estate and trust professionals are skilled in the intricacies of acting as attorney from both an emotional and technical perspective. We are sensitive to the complexities of your unique family dynamics, and approach each situation with compassion and professionalism to make the process as easy on you as possible.

When our corporate Power of Attorney services may be right for you?

- You want to ease the burden on your friends and family

- You prefer that a professional handles everything

- You have no family or friends to act as attorney

- You anticipate a challenging family situation

For more information, speak with us or call the Royal Trust at 1-855-833-6511 or visit our website at rbc.com/estateandtrustservices